Saudi-listed Jabal Omar Development Company has signed a 2 billion Saudi riyal ($532.88 million) Islamic credit facility with Saudi National Bank.

The Murabaha facility will be used to refinance existing facilities on improved terms and enhance cash flow sustainability, the developer said in a statement to the Saudi stock exchange.

The facility has a 15-year term and is guaranteed by a mortgage on an asset in the Jabal Omar master development in Makkah.

In March, the developer said it was advancing planning for phase 7 of its Jabal Omar project.

The company plans to add 1,346 keys and over 20,000 square metres (sqm) of gross leasing area (GLA) in phase 4 by 2027.

On Wednesday, a Zawya Projects report said Saudi Arabia's construction sector returned to growth in May as greater regional stability encouraged the resumption of existing projects and the restart of new developments.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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